For the quarter ended December 31, 2012, the Company's average realized price (unhedged) was $100.41 per Bbl of oil and $9.89 per thousand cubic feet ("Mcf") of natural gas, compared to an average realized price of $101.28 per Bbl and $7.25 per Mcf in the quarter ended December 31, 2011 and $105.81 per bbl and $8.14 per Mcf in the quarter ended September 30, 2012. For the three months ended December 31, 2012, the Company expects to report a net loss from continuing operations in a range of $20.2 million to $25.2 million and Adjusted EBITDAX in a range of $22.0 million to $24.0 million.

Reconciliation of Adjusted EBITDAX to Net Loss from Continuing Operations
U.S. dollars in millions For the three months ended
  December 31, 2012
Adjusted EBITDAX from continuing operations $22.0 - $24.0
Subtract:  
Interest and other, net $1.2
Income tax expense 2.6
Depreciation, depletion, and amortization 11.3-14.3
Accretion of asset retirement obligation 0.1
Exploration, abandonment, and impairment 24.4
Seismic and other exploration 2.4
Other items 2.2
Net loss from continuing operations ($25.2) - ($20.2)

Adjusted EBITDAX is a non-GAAP financial measure that represents earnings from continuing operations before income taxes, interest, depreciation, depletion, amortization, impairment, abandonment, and exploration expenses, unrealized derivative losses and non-cash share-based compensation expense.

Management uses Adjusted EBITDAX as a financial measure to evaluate the Company's operating performance. The Company has disclosed Adjusted EBITDAX to permit a comparative analysis of its operating performance relative to other companies. In addition, the Company believes Adjusted EBITDAX assists management and investors in comparing the Company's performance and ability to fund capital expenditures and working capital requirements on a consistent basis without regard to depreciation, depletion and amortization, impairment of natural gas and oil properties and exploration expenses, which can vary significantly from period to period. Adjusted EBITDAX is also widely used by investors and rating agencies. 

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